Elon Musk is betting that a privately held Tesla Inc. would free his company of distracting scrutiny. But going private could also complicate Tesla’s effort to build a mainstream electric car by removing the easy access to capital the Wall Street darling has enjoyed.
Mr. Musk on Tuesday proposed taking Tesla private at $420 a share, about 11% higher than the day’s closing stock price. He called the funding “secured” for what would be the biggest-ever corporate buyout, but he hasn’t disclosed details. The board on Wednesday...